We appreciate that some readers prefer hard and fast answers. We cannot give them. For those willing to put in some effort, the following links should be helpful.

For the pricing “mechanism” of oil you can start from the following links (and from there elsewhere on the internet): http://en.wikipedia.org/wiki/Crude_oil (under pricing) http://tonto.eia.doe.gov/ask/crude_types1.html

For the best history/analysis of the oil market, see: Blair, John M. (1976). The Control of Oil. New York: Vintage Books.

For an explanation of how the so-called “free market price” of oil is in fact a “political price” and indeed a measure of power, read Ch. 6 in our Hebrew book “From War Profits to Peace Dividends". (http://bnarchives.yorku.ca/archive/00000005/).

For earlier detailed analyses in English, see our papers:

“The Political Economy of Armament and Oil – A Series of Four Articles” (1989), particularly the 3rd and 4th papers http://bnarchives.yorku.ca/archive/00000136/

“Bringing Capital Accumulation Back In: The Weapondollar-Petrodollar Coalition – Military Contractors, Oil Companies and Middle-East "Energy Conflicts" (1995).
http://bnarchives.yorku.ca/archive/00000013/

“Putting the State In Its Place: US Foreign Policy and Differential Accumulation in Middle-East "Energy Conflicts" (1996) http://bnarchives.yorku.ca/archive/00000011/